IMPACT OF MANUFACTURING SECTOR OUTPUTS ON ECONOMIC GROWTH IN NIGERIA

Abstract

The study examined the impact of manufacturing sector outputs on economic growth in Nigeria for the period 1992 to 2024. Data were generated from the database of World Development Indicator (WDI) and Central Bank of Nigeria (CBN) 2024 Statistical Bulletin. The research design adopted was the ex-post facto. The analysis was 
study carried out using Vector Auto Regressive (VAR) model. Results of the analysis showed that food and beverages manufacturing output (FBMO) has positive and significant impact on economic growth. Rubber and plastic manufacturing output (RPMO) also has a positive and signifiperiod under study. While textile manufacturing output (TXMO) and chemical and pharmaceutical output (CPMO) both have a negative impact on economic growth in Nigeria. The study concluded that the performance of the manufacturing sector output is found to be in great need of reforms and improvement because its contribution to the economic growth in Nigeria is low. Consequently ,the study recommended Based on the findings, that Nigeria policy makers should use industrial policy measures to control or check high importation of manufactured goods so as to encourage the domestic manufacturers to expand their production and boost the capacity utilization of the sector and productivity. The study also suggests that government should provide infrastructural facilities particularly, power to increase productivity in manufactured goods and reduce cost of productions to enable them compete effectively in the international market.